meetings, investors look very closely for indication what the fed might do. melissa: the cover is beige. that's why they call it that. number one thing to watch tomorrow, october new home sales. sales were up 5.7% in september. the best annual rate since mid 2010. economists expect a small small rise. david: that is good news. we'll end on good news. melissa francis is next. melissa: i'm melissa francis and here's what's "money" tonight. the great ideas just keep pouring out of d.c. now a hike in the national gas tax could be part of the fin al compromise to avoid the fiscal cliff. can you believe it? republican senator james improve joins us with reaction. how been a assault rifle under the christmas tree? black friday shopping blows away records for gun sales. one gun store rep is here to explain why because i'm not sure i get it. will the keystone xl pipeline make it or not? the final public hearing is just days away. pressure is mounting on president obama to approve the new route.

ceo of transcanada is here for a fox business exclusive. even when they say it's not it is always about money melissa: first let's take a look at the day's market headlines. stocks bit it for the second straight day senate majority leader harry reid indicated that little progress has been made in recent fiscal cliff talks. big surprise there. so you're welcome, investors. the major intoday sees slid on the news and the dow fell 89 points. shares of green mountain coffee are skyrocketing after-hours. the company solidly beat expectations for fiscal fourth quarter earnings, pointing to strong sales of its k cup coffee & tea packs. apple reportedly fired the manager behind apple maps. iphone software has been widely panned for flaws and inaccuracies since its launch back in september. what you really want is an accurate map, so there you

go. on to our top story tonight, president obama ups the ante on fiscal cliff pressure meeting with small business owners from all walks of live at the white house today. the million dollar question? what will be the real impact on small businesss? with me now, straight from that meeting in a fox business exclusive is the cofounder of book to the roots, an urban mushroom farm growing gourmet business. wow i have to ask yyu a lot about that because i don't understand that. i will ask you first, what happened at the meeting? what did you guys talk about and what was the response you got. >> yeah, thanks for having me on. it was an incredible opportunity. it was really fun room. cool to see the energy and passion in the room. it was 15 small business owners along with the president and i think he asked us to share our stories and how we got to where we are today. he kind of explained a little bit about his vision for the economy and where he thinks it is going. and thoughts about what is top of mind for us about the economy.

melissa: so what did you say and did you feel like he listened to you and was going to take action based on that? >> yeah. absolutely. it was really, he had a lot of his top administration there. vice president biden was there as well. they were all really kind of into everything we're saying. very actionable. it was fun to see back and forth t wasn't just him listening to 15 different people. he was engaged and asked questions. melissa: what did you ask him to do specifically? what did you say would help your business? >> one thing that helped us a lot incentives for small businesses to hire. particularly for us we were able to use the jobs now program out in the bay area to get some of our first staff on board. it was to provide a story and face to impact some of these programs that can incentivize hiring for small businesses had. we wouldn't be here without it. melissa: so you got money for hiring new people? or how did it work specifically for you?. >> that was an incentive program to hire through certain job programs where

people have been unemployed i believe for six months and had children as well. it was incentive to hire through there. it was a really strong program. i think it created over 200,000 jobs across the country. we were able to get a lot of our first employees there. our story was sharing that story. melissa: yeah. >> things that will have to be cut through this whole fiscal cliff thing i want to make sure that, support for small businesses --. melissa: no, you don't want your thing to get cut. that is the problem here. nobody wants their special interest to get cut. i'm sure you mentioned that. i don't think i understand your business. back to the roots is an urban mushroom farm growing gourmet mushrooms and mushroom kits. what is a mushroom kit? >> a mushroom kit, when the boxes i have right here. small little brown box. we use recycled coffee grounds from local cafes in the bay area. collect all the coffee ground waste being thrown away bring it back to the urban farm turn it into the soil for these kits. get a box like this, open it

up and 10 days get first crop of gourmet mushrooms right out of the box. inspiring people to grow their own food and realizing you don't need a green thumb or big backyard. that anyone can grow their own food. take a waste stream growing own food. melissa: i'm sitting here in shock. you use coffee grounds to grow mushrooms. >> yeah. melissa: are you profitable? do you make money? >> we are even profitable since we started. we have 31 employees now. we're diverting 40,000 pounds a week of coffee ground waste for our partner peet's coffee in the bay area. we sell our kits 2200 retailers, home depot, whole foods, nordstrom. bed, bath & beyond. melissa: that is amazing. how did you get on the president's list. they're telling me i'm out of time. how did you get invited? what is your connection? >> we got a young entrepreneur award through there. we were able to meet some of the people on the business council a year ago. through them they have stayed in touch. we stayed in touch with

them. i believe when president asked for small businesses that represent a lot of different industries, obviously mushroom farming being diverse they thought of us and invite us into the room. it was a big honor. melissa: thanks so much for coming on the show. >> thank you so much. melissa: i had no idea that was business or industry. you learn something new every day. we appreciate it. >> i appreciate it. melissa: we have bart, another business owner, ceo of full contact in denver. bart you were not invited to the white house. you do not grow mushrooms. >> neither. melissa: there is lot just went by there in that last interview that was kind of new information to me. are you sad you're not in the mushroom business? he is profitable. he got invited to the white house. i had no idea that you could, you know, grow mushrooms in dirty, wet coffee grinds but hey. >> you know, it's a real fascinating business, the mushroom business. being from colorado i won't comment on mushrooms or --. melissa: yes, too easy.

>> it is too easy of a joke. melissa: i mean, what do you think about everything he just said? he said that there was a very positive and exciting vibe in the room? they're exchanging ideas. the president is listening to them. it is all very actionable. one thing i heard was, something everyone is saying here's the thing i'm getting from the government right now i like. this incentive program getting for hiring people and he doesn't want it to go away. we're all in that boatright now, right? >> yeah. i mean i think, i think what i heard was, i like to know the makeup of 15 small businesses my guess, a lot of them were benefiting from certain government programs. and it is really interesting because i'm benefiting from very few government programs if any. i certainly wasn't invited. melissa: why do you think you were not invited? i mean -- >> probably because i'm not taking advantage of any special government programs. that is my guess. melissa: what i'm saying in

all seriousness, he doesn't want his special interest program taken away. people don't want their taxes to go up. we're looking at this huge divide between our bills and what we have to pay and sort of no one wants to put something, everybody wants someone else to put money into that hole and fill it up but they want to keep, you know, their own thing off to the side. if you were at the white house what would have you told the president to do about the fiscal cliff crisis? >> look. listen. all these incentive prograas, like owe took advantage of, i never heard of that particular credit, right? in my mind all these credits and sort of incentives you create for entrepeneurs to do what entrepeneurs do is really pretty meaningless. like changing around the deck chairs on the titanic. the real fundamental thing hear is the tax rates going up, okay? and, that is the real huge issue. it's going to decrease disposable income for

patrons of small businesses. it will really hit small business owners very hard because most small business owners have pass-through entities like s-corps and lccs. we get hit with sort of increased taxes we literally make choices between hiring new people and giving money to government. now it is not a choice. we simply don't hire. so it, we're getting hit on both side by this increased taxes. these incentives i don't think are really material in the long term. melissa: your taxes are going up. it will mean you have less money to invest in your business to buy equipment or to hire people. that is the bottom line. bart, thank you. >> our customers have less money. melissa: that is also important. thank you so much for coming on the show. we always like to see you. >> thanks, melissa. melissa: and i will be growing mushrooms. talk about taking a stand against the government. look at this. look at this house. the owner wouldn't budge and look what happened. there's a road. it is going around his house because he wouldn't move his house. we are going to get to the

story in a bit. talk about someone else taking a stand about the government and who is going to win. the fiscal cliff debacle,% just when it seems like some movement was being made we're hearing a new idea that could derail all of it, a hike in the federal gas tax. we're going to -- are we going to see higher prices as a result of this deal? with me now is senator jim inhofe. welcome to the show, thanks so much for coming on. >> nice to be with you, mole list is a. melissa: what do you think, a higher federal gas tax. this was getting a lot of buzz throughout the day today. do you think it is a real possibility? >> no. well, yeah it has a possibility but melissa, you have to keep in mind, they're doing this because the only popular tax around is the gas tax. people assume that the money when they pay at the pump and goes into the highway trust fund it will be used to build roads and bridges to maintain. that is popular thing. people think we need that. so to me it is deceptive to load the extravagance of the

obama administration to be paid off by people paying a gas tax. melissa: yeah. >> they did it, probably didn't know this. they did it in 1990. did it in 1993. about a nickel increase each time. at that time almost doubled the gas tax. melissa: so incredibly regressive. hits the exact people they talk about protecting and that democrats talk about protecting last election. it goes right after, it hits the middle class and lower income people the hardest of course because it is incredibly regressive. let me ask you, i feel like today when i was hearing talk about trying to close this gap we're looking under every broke for more money and more tax revenue. doesn't seem like we're cutting spending very much s that the right impression. >> keep in mind, melissa. you and i know this. a lot of viewers might not know, we have 5.3 trillion deficit because of one person, that is obama. he doesn't seem to change his behavioral patterns now so it is not getting any better. how could we his own budget

come up with $5.3 trillion in four years and then say, now we have to somehow find $1.2 trillion for 10 years? meantime he will continue to go ahead and increase the deficit. so i don't have any faith in it. look, this morning i was on "fox & friends." i outlined a lot of alternatives we could do where we wouldn't have to raise taxes. one was, i already introduced legislation that would take care of that. we covered it at some length. but if you looked at what happened in the past, the best way to do this is get all these regulations out of the way so people can grow their own businesses. for everyone percent increase in -- everyone% increase in that was kennedy back in the '60s. he discovered that. that wasn't republican idea. melissa: you're talking about regulation. i know you're really focused on the epa so i don't want to run out of time without asking you. we'll have the ceo of transcanada later talking

about the xl pipeline. this is another thing we left to be resolved after the election. do you think we'll see that full pipeline approved and put into place? what do you think? >> well, i think obviously we should but you still have the far left is going to be pulling on the president on any input he would have. let's keep in mind, that pipeline by the way goes through my state of oklahoma. melissa: yes. >> a big intersection is in oklahoma. i have a dog in that fight. that is something absolutely no reason not to see all the way through yet he is will be fighting it. i don't know how that will turn out. would i say this though. the one thing we know will continue to increase because you might recall before the election i came up with the eight increases in regulations that he was going to do after the election. now to do this he had to violate a law because there is law that says every six months you have to come out with the cost in terms of jobs and money of new regulations. and that was due the 31st of

october. he just, you know, flagrantly disobeyed the law so people didn't know. now we're looking at these huge things coming on us, i'm talking about, the, you've seen the whole list. melissa: i hear you. it is agonizing. no, i hear you. senator, thank you so much for coming on the show. we appreciate your time. >> thank you, melissa. melissa: here is our "money" question of the day, should a higher federal gas tax be part of a fiscal cliff compromise? we want to hear what you think. like us on facebook.co facebook.com/melissafrancisfox or follow me on twitter twitter,@melissaafrancis where almost no one liked the tax. fuel gauge report today, oil fell more than half a percent settling at 87.18 a barrel. six u.s. senators are asking justice department to launch a probe of west coast oil refineries. remember we told you about

this story. recent analysis, refineries were operating earlier this year despite public reports they were shut down. the reported closures were blamed for hike in west quote gas prices a spike in prices in october and may. we brought you that story. iran's government is reportedly looking to slash the outlook for oil revenues. iran's budget the next fiscal year may lower expected oil sales by $110 million per day. sanctions reduced iran's oil exports by 35% since 2011. next on "money", watch out ipad minis. one of the hottest gifts this holiday season may be assault rifles. how black friday is giving a huge bang to gun sales next. egypt's new president faces biggest challenge to his power yet. hundreds of thousands of protesters rallying against his rule. one man who met with morsi is here to tell us if his

days in office could be numbered. more "money" and money to grow mushrooms from coffee grounds coming up. ♪ . having you ship my gifts couldn't be easier.

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melissa: so gun sales blow the roof off black friday. get this. one gun and ammo store in texas saw their sales skyrocket 400% from a regular friday. from an average of $20,000, $78,000. what a day. patrick woods is the director of operations and development with spring guns and ammo. he is here to tell us all about it. patrick, welcome back to the show. thanks so much for coming on. you know, you had a fantastic friday but you're not alone. i mean the stats are really overwhelming. when you look at the background checks of the fbi, they said they feeled 154,873 calls, a 20% increase, from last year's black friday which was an all-time record last year. what is it about black friday? is it, is it spending thanksgiving with your family that makes you want to go out and get a gun? what is it about black friday that gets people to the store to buy guns? >> i think it is a mix of things really. you know, black friday

coincides pretty well right now with the re-election of president obama. so that is on a lot of folks in the gun industry's mind. you get into the normal holiday season on top of discounts available. i would honestly say that one of the largest factors involved is the presidential election. melissa: why is that? does it make people feel violent? i'm kidding. you feel like, you feel like your gun rights will be taken away and you need to get one when you can? do you think that is it realistic? do you think that can happen? >> he mentioned during the second presidential debate he had interest in reintroducing the clinton ban on assault weapons and high capacity magazines that concerns people a little bit. that is what we saw sold on black friday. melissa: a year ago, according to the fbi, they're fielding background check calls, they also set a record on black friday. it was not like it was unique to this year. a year ago they weren't

anticipating election? is it beginning, i live in new york city. i'm ignorant about these things. is it beginning of hunting season? is it something else you can say or it just a great christmas gift. >> you know, honestly a year ago people weren't concerned with a second term re-election. you know, there is a lot of concern right now, there is lot going around about, there is no third term coming up. so anything that will happen will happen now. i can only attribute it to that. there is no other way, now in our stores, specifically, last year we didn't do nearly what did he did this year. we doubled what we did last year this year. melissa: yeah. >> while it was a terrific year last year, even more so this year. melissa: what is your best-seller? what is really flying off the shelves so to speak at your store? >> brought with me today an example of ar-15 type weapon. this one has optic. and has suppresor on it. class 3 items like suppose source are biggest sellers in the store right now. along with bulk ammo. a lot of people buying

ammunition by the case. melissa: what, weapon like that. a weapon like, that, what do you need that for? >> well this is a sporting rifle. what you use it for a lot of different league type shooting. sport shooting at the range. it has high capacity magazine. so, people are using it a lot for competition. melissa: what kind of ammunition -- go ahead. >> actually now, in the hunting venue. there are more and more people using these modern sporting rifles for hunting. melissa: wow! okay. merry christmas. i'm not sure if that will be under my tree but it looks fun. thanks for coming on the show. looks a lot more fun than the mushrooms they were growing in coffee grounds in the last segment. i don't know. anyway, congratulations on your black friday sales. thanks for coming on the show. >> thank you for having us back. melissa: all right. this show is of the rates, right? next on "money", fury against egypt's president spreads with hundreds of thousands of protesters in

the streets. i will talk with one man who sat with morsi face-to-face. i'm so interested to get his take. plus it is do-or-die for the keystone pipeline. will ranscanada finally score approval from president obama? its ceo joins us in a fox business exclusive. that is coming up. do you ever have too much money or too many assault rifles? ♪

♪ . melissa: protests rocking egypt for the fifth day in a row. two people dead, hundreds of injured. police firing tear gas into the crowds, all over newly-elected president morsi and his terrifying power grab. fox news's steve harrigan is live in the cairo with the latest. what is happening there? >> these protests have been

going on for five days and they have been getting stronger each day. this is the largest rally we've seen. perhaps as many as 100,000 people packing into tahrir square behind me. really a mix of people from different political parties. they're really united by one thing. anger over the move i about the president really to give him the power to issue any decree and make himself above the law beyond the reach of egypt's courts. throughout the day we saw street battles between protesters, especially younger protesters on side streets battling with police. tear gas back and forth. rocks back and forth. police sometimes picking up rocks throwing at protesters. a total of four people have been killed so far in the protests. we're waiting an watching to see what the people who support president morsi, the muslim brotherhood will do. they had a major march today. they canceled it. they are concerned having both groups on the street at the same time could prove more violent than what we've

seen before. back to you in new york. melissa: what do you see of a compromise going on as we see what is going on behind you there? >> both side have taken very hardline positions. the president, while he has talked to some of his critics said he will not back down from his decree. as far as the opposition goes, they want a total backdown or total withdrawal by the president or they won't leave the streets. there is not a peace-saving way out of this for either side right now. it is a confrontation. it will be a question of will. will these protesters it continue to stay out on the streets night after night? melissa: steve harrigan, stay safee thanks so much for your report. there is so much we don't know about egyptian president mohammed morsi but my next guest actually interviewed him last year while studying the muslim brotherhood. he is a next generation fellow with the washington institute for near east policy. and, eric, are you surprised by what you see going on right now based on what you know of president morsi?

>> thanks for having me. i'm not surprised at all. i mean mohammed morsi, first of all, comes from an organization that is very dictatorial. that is an organization that takes five to eight years to join and as part of that five to eight-year process the brotherhood tries to weed out anyone who disagrees with it. this is really organization that doesn't embryce pluralism. what i learned about mohammad morsi in the course of studying him, before becomes the president of egypt he was the muslim brotherhood's internal enforcer. in other words he was the one responsible for pushing people who disagreed with some of the organization's ideas or disagreed with some of its tactics he was responsible for pushing them out. this is someone very undemocratic in the way he behaves within the organization. therefore it is not surprising at all once being elected he would act undemocratically. melissa: what was he like face-to-face? tell me me about the meeting and how he based and what happened. >> sure. i actually interviewed him

before the revolution face-to-face. i interviewed him a number of times over the phone before the revolution. face-to-face in august 2010. i asked him a number of personal questions, buy graph call stuff. where he went to high school. what his father did for a living and he refused to answer. the reason he refused to answer he said all muslim brothers are effectively the same. i didn't need to know about any one individual brother. it gives you a good sense what this organization is about. this is an organization that has a unified ideology, a unified way of moving on the streets. and really embraces organizational ideals over individual personalities. again, just gets to the very undemocratic nature of the organization itself. he saw himself really as part of that and not so much as mohammad morsi first and foremost but as a brotherhood leader. melissa: was he hostile? >> he was very hostile. and that actually makes him quite different from a number about of other muslim

brotherhood leaders i met with. the brotherhood is really an organization that tries to do outreach, that in many respects proselytizing. it tries to recruit others. most muslim brotherhood leaders are quite friendly. morsi is different in that he was very hostile. what i learned about him in researching him, he was actually the brotherhood's point man in negotiations with the mubarak regime. why did they choose him? they chose him because they trusted that he would toe the brotherhood's line. that he wouldn't concede anything to the mubarak regime. that is the think he is now. a hard-liner. melissa: what was it like when you talked to him after he became president? >> i actually have not gotten to speak with him since he became president. of course he doesn't answer his cell phony more. melissa: but you said that was when you met him face-to-face. you talked to him after the revolution, is that what you're saying before?

>> in other words after the revolution he was the president of the freedom and justice party which is the brotherhood's party. he actually used to answer his cell phone. melissa: what was he like during that period? >> well, you know, during that period he was really pushing for, especially during the revolution and a little bit after he was very concerned about the role that the united states would play in egypt and his comments to me were typically things like, stay out, stay out. this is a person who holds a very hostile view towards the united states. really if you speak to other americans who have dealt with him, people who are much more optimistic about the brotherhood than i am, they come away saying this guy is like a porcupine. melissa: wow! really interesting insight. we appreciate your time tonight. >> thanks for having me. melissa: next on "money", it is the last chance for the keystone xl pipeline. in just days the final hearing for the new route, will president obama say yea or nay? the ceo of transcanada joins us in a fox business

exclusive. that is coming up. look at this. this is how dairy farmers in europe react to milk prices. but could we see the same thing happening in california? we're going to explain all of it coming up. "piles of money" coming right up. ♪ . [ male announcer ] if you're eligible for medicare,

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melissa: so big litmus test in the talk over weather the u.s. will be independent by 2020 is the keystone pipeline. will it happen or not? now it is down to the wire. after revising the route to ease environmental concerns the final public hearing is set for next week. a lot hinges on the approval. joining me in fox business exclusive, transcanada president and ceo, russ girling. russ, thanks so much for coming on the show. what do you expect to happen at this hearing? >> this is a public comment period or public comment session for nebraskans. over the last year we've spent considerable time with the department of environmental quality deffning a new route. through that process we had a number of public engagement opportunities where we collected comments from nebraskans. that has been put out for public viewing and there

will be a public, oral, hearing or comment period on december the fourth. we look forward to hearing those comments. from there, the department of environmental quality will take the comments and hopefully incorporate them into a final recommendation to the governor hopefully by the end of the year. melissa: this is long and, you let me say it, because i know you won't say it, painful process. i mean basically what i just heard you say is, you sort of heard complaints from everyone who could possibly show up to complain about this pipeline. you try to accommodate as many as you can. you will have another hearing. you will hear from more people. are you hopeful about this? it has been a long road. do you think you've done enough now, to get this done to make enough people happy? >> there is no question this has been a long road. it has been the most exhaustive process i've ever been involved in for a piece of infrastructure of this nature. but i remain optimistic. the demand for the pipeline continues to grow. u.s. production is on the

rise, as is canadian production. that production now moving to market by rail. that is not as safe as it is to move it by pipeline. so the demand is definitely there and, u.s. imports some 10 million barrels a day of oil. this new production will displace that oil if we can get it to market so i remain optimistic. the fundamentals are still very strong for this pipeline. melissa: the lower portion of the pipeline is already under construction, right? i mean they're already working on it. it has been approved. what happens if that ends up being the only portion of it? >> that portion of the pipeline is needed as well. it as this new production has come on in north america, the crude oil is being bottlenecked at a place called cushing, oklahoma. it can't get to the markets on the gulf coast. that pipeline will open up the bottleneck. but that bottleneck will, you know, be created again if we don't continue to expand the pipeline routes from like nebraska, from north dakota, and montana

and from canada through to cushing and through to the gulf coast. those links need to be debottlenecked so we can see the free flow of oil continue to happen. melissa: who do you think the is the main opposition at this point? is it environmentalists? you have unions on your side because obviously you're creating a lot of jobs. who do you feel like is the biggest constituency you have to win over? >> we have tremendous support for this project. the polling we see both in nebraska and on a national level is, 2/3 to, 75% of americans want this project to occur. those that are opposed i don't think are fundamentally opposed to our pipeline necessarily. they're opposed to the development of the canadian oil sands and that is clear. their argument this is the most detrimental thing to the environment that could ever occur but i think what they're missing is, canadian oil sands only produce .1 of

1% of. we have to get the facts out there and i think most folks understand that this oil is important to energy security. it is important to job creation. it is important to economic stimulus. and, if it is denied, we don't have any, net benefit to the environment. we only have a net detriment to the economy and to energy security. that is why the polling is in our favor. melissa: not only that, if they're talking what will happen to the environment if the pipeline doesn't go through, it doesn't mean that you're not going to take oil from those oil sands in canada. it just means that oil is not going to come to the u.s., right? you're not not going to develop that resource, it will just end up going to asia if we don't build the pipeline, right? >> i think as the chief economiss of the international energy agency today said, the world demand is growing and we need every drop of canadian oil. so canadian oil sands is going to get developed. it will get developed responsibly. make no mistake it is

getting developed. i would say if we can't deliver to the united states, that's a huge loss for north america. but it will go to other markets. melissa: absolutely. russ girling, thanks for coming on. good luck to you. >> thank you very much. melissa: breaking news on a freedom of information act victory by fox business network. it is related to the federal bailout of aig. robert gray has more ton this story right now. robert. >> that's right, melissa. you recall fox business was leading the vanguard to get some documents from the treasury department related to that bailout, $182 billion in taxpayer fund back during the financial crisis. of course these documents gave us an insight and allowed us to report how treasury was concerned about the issuance of bonuses for aig officials and executives there, while the company was owned by taxpayers and receiving these large bailouts is disclosed treasury officials considered letting aig file for bankruptcy protection. now within those documents however, a number about of things were rebeing todayed. that means they were blacked

out. we did not have the full picture and all data and information. we will receive more document thanks to the courts that will allow us to report more fully on the situation. we'll get a clear picture of communication between treasury and aig, compensation, request from the media, dealing with congress and investor relations. we'll continue to follow up on this. we'll sort through mounds of data in these files, melissa. we'll report to you and fill in some of the blanks that were redarked out of those documents we won in an earlier foia case. melissa: excellent. a win for transparency. thank you so much, robert. >> you're welcome. melissa: coming up, only in europe would people set things on fire and use superpowered milk cannons to protest dairy prices. calfornians might be watching this and getting some ideas though. we'll explain it. at the end of the day, it is all about money. ♪ [ malannouncer ] it'that time of yeaagain.

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♪ . melissa: well this is how they do it in brussels. we are showing you video

right now of belgian farmers, hosing down the european parliament with milk obviously. isn't that what you would do? they are protesting falling dairy prices. hopefully we'll not see that on capitol hill but you never know. dairy farmers in california are having some problems of their own right now. they are angry that a state regulation lets cheese makers buy milk for less than they should and some are talking about actually moving their cows out-of-state, just herding them over the border. here to explain this is mark sanders. republican strt gift. >> -- strategist. it has been quite a show so far. let me ask you this is a crazy situation. we have tooexplain it to our viewers here. basically this is an elaborate case of price fixing and shows how it never really works. they're trying to keep milk prices low for cheese producers but the government hasn't really thought about

what happens when the price of feed goes up so much now all of a sudden the guy in the middle, the milk farmer is getting really crushed, right? tell me, what is your take on this situation? >> first of all, the federal government has been regulating milk prices ever since the new deal. just california taken it to the theoretical extreme and now california dairy farmers are actually getting paid for their milk roughly about $2 less per 100 pounds produced. part of that problem as you mentioned before you have skyrocketing feed prices because of oh so brilliant ethanol mandates. melissa: right. >> and on top of that you have got drought conditions and because of the cheese lobby in california being so strong, they keep the prices for milk producers down so that the cheese industry can stay afloat. they have also made it illegal for any out-of-state cheese producers to come and buy the cheaper california milk. melissa: wow, it would make your head spin. >> oh, yeah. melissa: what i like. this is part of the genius

behind it. state law requires california to keep the milk for cheese price in quote, reasonable and sound relationship. who, and this is what i love about the government. who is it that gets to decide what is reasonable and what is sound because that sounds very subjective to me? >> it is a bunch of unaccountable bureaucrats hired by the government to set these prices of the yet the milk producers come into town, hey, listen, give us a break, temporary lift on the minimum price. they're told, no, we don't want to be too rash on this we have to think about the long-term investment. meanwhile the farms are going bankrupt. very proud family who is held these dairy farms for generations are literally moving their cows out-of-state to get better milk prices or selling them off for hamburger meat at the slaughterhouse. melissa: this is the problem with price fixing because you have all the unintended consequences. let the market work on its own, yes, some people will go out of the business. that is the way the market works and you don't have the other problems. people are going out of business anyway because of

unintended consequences. mark, we've got to go. i'm so sorry. >> i appreciate it. melissa: thanks for coming on. >> as always, great, melissa. thank you. melissa: meet my new hero. one man takes on the chinese post single-handedly. he inside that house -- government. he wins. why it pays to stand your ground even if the government builds a highway around it! next. look at that! you can never have too much money. ♪ . can i help you?

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♪ melissa: my favorite part of the show. radio talk-show host and resident august. fox news legal analyst. first up, okay. this is my new hero. a farmer in china who refuse to move when the government wanted to build a highway. even compensation to relocate did not change his mind. the chinese government decided to build the highway right around this house. >> this reminds me of about 20 years ago, little old lady who lived in a small home in atlantic city. donald trump wanted to build a casino on the land. she did not want to move. offer her a ton of money.

she said no. he built a casino and parking garage around her house. more power to them. >> a tough precedent to set. what if it was like five people in different homes. eminent domain. that is the american way. my neighbor were a live, all part of it disappeared in the 60's to build the bridge. yet to leave your house. melissa: you are such a killjoy. >> it's cool. you have to have a plug. melissa: cars will crash into the side of his house. what does the highway look like? another one out of china. the satirical paper, the onion named north korea's dictator the sexiest man alive obviously. it some in china believed it and posted it in the communist party's on-line newspaper. didn't realize it was kind of jeopardy. >> especially when he wears as

platform shoes. he's only like four ft. nine. there you go. >> he's a young stud. nobody knows how old he really is. melissa: and whenever well. a young actor on the show to end half man gets paid about $8 million per year. how is that possible? he says he did not want to be on the show anymore. because it fills. talk about biting the hand that feeds you. $300,000 an episode in this telling people not to watch it. >> great christian values, but if you really feel that strongly about it quit. >> or be a big shut and let them write to check every week to his charity, church, or whoever it is. >> he can give away the money. no one is stopping him. >> i could use help. >> could it be a pr